For North American businesses operating across the EU and UK, understanding GDPR territorial scope is essential. As digital transactions increase, especially with cloud-based workflows and remote-working teams, personal data is frequently transferred across country borders. This often creates significant regulatory challenges for global businesses striving to remain compliant while ensuring operational efficiency.
In this blog, we demystify the GDPR’s extended jurisdiction for non-EU and non-UK businesses. You’ll discover practical guidance on compliance obligations and how to handle the complexities of cross-border data transfers.
For the purposes of the blog, GDPR will refer to both the EU GDPR and the UK GDPR. Although the legislations are essentially similar, there are some differences due to the UK leaving the EU.
Understanding the GDPR’s global reach
The General Data Protection Regulation (GDPR) transformed global privacy standards, requiring even non-EU and non-UK businesses to comply if they process the personal data of EU and/or UK individuals. This is known as extra-territorial scope, and it means that even if your company isn’t based in the EU or UK, you might still be subject to the GDPR’s rules if you serve or monitor EU or UK customers.
For any business, understanding the GDPR’s jurisdictional reach is vital – not only to avoid penalties but also to build trust and confidence with customers.
How to assess GDPR applicability for your business
Determining whether the GDPR applies to your business can seem daunting, especially for companies without any physical presence in the EU or UK. Here is an overview of how organizations in the EU/UK are impacted versus those operating outside these regions.
| Business location | GDPR applicability | Relevant article |
| EU/UK | Applies to all organizations established in the EU/UK that process personal data, regardless of the company size or nature of the data processing activities. This includes businesses, charities and not-for-profits, and public authorities | Article 3(1) |
| Non-EU/UK | Applies if the organization offers goods or services to individuals in the EU/UK or monitors their behaviour | Article 3(2) |
Are you a data controller or data processor under the GDPR?
Identifying whether your business is acting as a data controller or data processor under the GDPR is also essential, as this distinction will shape your compliance obligations and the specific responsibilities you have under the law.
- Data controller: An entity (such as an organization) that determines the purposes and means of the processing of personal data
- Data processor: A third-party processing personal data on behalf of a data controller
For more detailed information, visit the European Data Protection Board (EDPB) website for the EDPB’s official guidance on data controllers and data processors.
For UK guidance, the Information Commissioner’s Office (ICO) has similar UK GDPR guidance on controllers and processors.
Key compliance responsibilities for non-EU/UK data controllers
For data controllers that fall within the GDPR’s extra-territorial scope, there are several obligations to navigate, including ensuring compliance with all aspects of the GDPR. Controllers have broader and more direct responsibilities than processors, but these are the two most fundamental requirements:
- Comply with the GDPR’s 7 principles – This is essential, not only for compliance but to build trust with customers
- Appoint an EU/UK Representative – If your business doesn’t have an establishment in the EU/UK and you process the personal data of EU/UK individuals, you must appoint a Representative to ensure your organization can be contacted for data protection matters within the region, including Data Subject Access Requests (DSARs)
Key compliance responsibilities for non-EU/UK data processors
Under the GDPR, if your business acts as a data processor, you will have fewer responsibilities compared to data controllers, but you must still comply with certain GDPR requirements. These are some of the key obligations:
- Comply with your Data Processing Agreement (DPA) – As a processor, you must follow the terms set out in your DPA (typically drafted by the controller), which includes your responsibilities around:
- Protecting personal data
- Maintaining confidentiality
- Implementing the appropriate measures to ensure data security
- Data breach notifications
- Compliance with GDPR and any other relevant data protection laws
- Appoint an EU/UK Representative – Similar to data controllers, if your business processes the personal data of EU/UK individuals, you must appoint an EU/UK Representative to act as your point of contact within that region for regulatory matters
Managing data transfers under the GDPR
Understanding the privacy requirements for data transfers from the EU and UK to North America is another key component of the extra-territorial scope of the GDPR. Whether you are a data controller or a data processor, transferring personal data outside the European Economic Area (EEA)/UK requires careful attention to data protection to ensure compliance with GDPR standards.
On January 15, 2024, the European Commission confirmed renewal of Canada’s adequacy status under the GDPR. This means that Canada’s data protection laws are deemed to offer an adequate level of protection for EU individual’s data. The UK has also awarded adequacy to Canada for Canadian commercial organizations to continue transferring personal data from the UK to Canada without the need for additional safeguards.
However, it is still crucial for businesses to regularly review their data transfer mechanisms and privacy practices to ensure ongoing compliance.
Essential compliance tips for businesses outside the EU
Achieving compliance with the GDPR can seem challenging but there are some initial practical steps you can follow to support your compliance journey:
Conduct a data audit to understand what personal data is collected, where it is stored, and with whom it is shared. This will help you identify any gaps in compliance and areas for improvement.
Implement robust data protection policies and procedures that establish clear data handling practices.
Appoint a Data Privacy Officer (DPO) or other senior individual accountable for data protection matters to oversee compliance efforts.
Summary
The GDPR’s reach extends beyond the EU and UK. This means that even if your business is based in Canada or the US, you may still need to comply with the GDPR if you process the personal data of EU/UK individuals or monitor their behaviour. And knowing whether your business acts as a data controller or data processor is also essential for determining your specific obligations under the law.
For North American businesses, compliance involves adhering to the GDPR’s core principles, appointing an EU/UK Representative, and ensuring safe cross-border transfers. By taking practical steps to ensure compliance, businesses can turn compliance into a competitive advantage and strengthen customer trust and reputation.
The DPO Centre has one of the largest teams of specialist DPOs available and our EU/UK Representatives cover all 27 EU Member States and the UK – if your business would benefit from our support, please contact us and we can discuss your needs.
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In case you missed it…
- Privacy in Canada and USA: 2024 highlights and 2025 expectations
- GDPR advice for SaaS companies entering EU & UK markets
- Quebec’s Law 25: A guide to support privacy compliance
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